ContentsAnalytical ArticlesRUSSIA'S REGULATION OF LABOR MIGRATION SET TO HURT CENTRAL ASIAN ECONOMIES, by Nurzhan ZhambekovMOSCOW CFE KILL THREATEN CAUCASUS STABILITY, by Richard WeitzCAUCASUS EMIRATE FACES FURTHER DECLINE AFTER THE DEATH OF ITS LEADER, by Emil Aslan SouleimanovKAZAKHSTAN AND NEIGHBORS SEEK STRATEGIES TO COUNTER EMERGING THREATS, by Jacob ZennField ReportsKYRGYZSTAN'S PRIME MINISTER RESIGNS, by Arslan SabyrbekovISLAMIC STATE REACHES OUT TO GEORGIA, by Eka JanashiaARMENIA'S PRESIDENT VISITS THE VATICAN, by Erik DavtyanAZERBAIJAN DEMOTED TO EITI CANDIDATE, by Mina Muradova

ContentsAnalytical ArticlesCHINA AND PAKISTAN PREPARE TO ESTABLISH ECONOMIC CORRIDOR, by Ghulam AliDAGESTAN'S INSURGENTS SPLIT OVER LOYALTIES TO CAUCASUS EMIRATE AND IS, by Emil SouleimanovGEORGIA'S ECONOMIC CRISIS AND POLITICAL BRINKMANSHIP, by Ariela ShapiroTHE CHINA-ARMENIA DECLARATION AND BEIJING'S PROSPECTS IN THE SOUTH CAUCASUS, by Eduard AbrahamyanField ReportsGEORGIA'S FORMER DEFENSE MINISTER BLAMES GOVERNMENT FOR DAMAGING STATE INTERESTS, by Eka JanashiaARMENIA-EU RELATIONS ENTER A NEW PHASE, by Erik DavtyanAZERBAIJAN AND THE IRAN AGREEMENT, by Mira MuradovaKYRGYZSTAN MARKS FIFTH ANNIVERSARY OF REVOLUTION, by Arslan Sabyrbekov

The outcome of Turkey’s recent parliamentary elections may partly reduce tensions in relations with Armenia, stopping the mounting hostile rhetoric of recent months. A normalization of bilateral relations should not be expected at this stage, but the trend of increasing cooperation in the humanitarian area, and in culture, tourism, and the media in recent years will likely continue. At the same time, some policies may need to be reassessed in consideration of regional security risks, including the growing level of militarization in the South Caucasus, increased tensions on the line of contact in Nagorno-Karabakh in the absence of progress in the negotiation process, as well as Russia’s capacity for manipulating the regional conflicts.

Ahead of the EU’s Eastern Partnership summit in Riga, possible perspectives of Armenia’s relations with the EU became one of the most discussed issues on Armenia’s foreign policy agenda. After Armenia decision in 2013 to decline initialing an Association Agreement with the EU, instead opting to join the Russia-led Eurasian Economic Union (EEU), the two parties have decided to promote bilateral cooperation in a new format matching the new realities in the South Caucasus.

On May 11, Armenia’s Minister of Foreign Affairs Edward Nalbandian received the political directors of Poland’s and Sweden’s Foreign Ministries, Yaroslav Bratkevich and Torbjörn Sohlström, who reportedly arrived in Yerevan to hold consultations in the lead-up to the Riga Summit. The interlocutors discussed issues relating to preparations for the Riga Summit. Nalbandian reaffirmed that Armenia aims to develop and deepen cooperation with the EU in different fields, given Armenia’s obligations under other international integration formats. Bratkevich and Sohlström represent the two EU member states that have played a key role in defining the EU’s new policy towards neighboring post-Soviet states. In 2008, the Swedish and Polish foreign ministers, Carl Bildt and Radoslaw Sikorski, presented the idea of creating an Eastern Partnership (EaP) between on the one hand the EU, and on the other Belarus, Ukraine, Moldova, Armenia, Georgia and Azerbaijan.

Simultaneously, on May 11, Armenia’s permanent representative to the EU, Tatoul Margarian, met with the EU Commissioner for the European Neighborhood and Enlargement Negotiations Johannes Hahn, discussing the bilateral preparations on the eve of the EaP Riga Summit. Towards the summit, politologist Narek Galstyan expressed the view that the EU has changed its attitude towards the six post-Soviet republics and has adjusted its policy to follow a bilateral, rather than regional track. In other words, the EU has decided to take an individual approach towards all six states, including Armenia.

On May 21, Armenia’s President Serzh Sargsyan paid a working visit to Latvia to take part in the summits of the European People’s Party and the EU’s Eastern Partnership. During the visit, President Sargsyan met with Latvia’s President Andris Bērziņš. The presidents praised the political dialogue between Armenia and Latvia, which has been developing in the spirit of mutual understanding, and the dynamics of interstate relations, and stressed the importance of boosting these dynamics. Bērziņš also considered Armenia’s decision to join the EEU pragmatic and welcomed Armenia’s balanced multilateral approach.

Sargsyan also met Germany’s Chancellor Angela Merkel. Both Sargsyan and Merkel emphasized the fact that Armenia and Germany have significantly enlarged and enriched their cooperation agenda through around six dozen cooperation agreements. They also commented security issues in the South Caucasus, especially in the Nagorno-Karabakh peace process under the auspices of the OSCE Minsk Group Co-Chairs.

The Riga Summit, held on May 21-22, resulted in the signing of a declaration which touched upon a myriad of issues. In relation to Armenia, the declaration states that “Participants welcome the common understanding reached on the scope for a future agreement between the EU and Armenia aimed at further developing and strengthening their comprehensive cooperation in all areas of mutual interest.” The parties welcomed “the progress to date in the implementation of the Visa Facilitation and Readmission Agreements (VFA/RA) with Armenia” and expressed hope that the EU and Armenia will promote a visa dialogue, provided that “Armenia continues to ensure sustained progress in the full implementation of the VFA/RA.” The signing parties also underlined that “they look forward to the launching of negotiations on an EU-Armenia Aviation Agreement at the earliest opportunity.” The declaration also mentioned the Nagorno-Karabakh issue, reiterating “full support to the mediation efforts by the co-chairs of the Minsk Group on the Nagorno-Karabakh conflict, including at the level of Presidents and their statements since 2009”.

Reacting to the Summit, EU Commissioner Hahn expressed his confidence in obtaining a mandate to start negotiations. The European Commission has issued a positive report on Armenia which stresses that “the EU and Armenia have reached an understanding on the scope of their future contractual relations that take into account the other international commitments of Armenia, in particular its decision to join the Eurasian Economic Union (EEU).”

On May 17, Armenia’s Prime Minister Hovik Abrahamyan paid a working visit to Batumi, Georgia and met his counterpart Irakli Gharibashvili. The interlocutors discussed the current level of bilateral relations, as well as issues of future economic cooperation. Georgia’s PM also met with Armenia’s Minister of Transport and Communications, Gagik Beglaryan, and the Chair of the Standing Committee on Economic Affairs of Armenia’s National Assembly, Vardan Ayvazyan. The one-day visit was of strategic importance for the future of Armenian-Georgian relations due to a recent diplomatic scandal that engaged the two neighboring countries.

On May 3, the Speaker of Armenia’s National Assembly, Galust Sahakyan, met with Anatoliy Bibilov, the Chairman of South Ossetia’s Parliament who arrived in Stepanakert to attend the parliamentary elections in the Nagorno-Karabakh Republic (NKR) as the head of South Ossetia’s observing group. Though the Armenian authorities emphasized that the meeting had a private, rather than political character, high Georgian officials expressed strong reservations against it. Georgia’s ambassador to Armenia Tengiz Sharmanashvili conveyed this message to Armenia’s Deputy Minister of Foreign Affairs Sergey Manasaryan, who confirmed Armenia’s support for Georgia’s sovereignty and territorial integrity.

Moreover, Armenia’s ambassador to Georgia Yuri Vardanyan was summoned to Georgia’s Ministry of Foreign Affairs on May 4. Deputy Foreign Minister Gigi Gigiadze noted that the Sahakyan-Bibilov meeting was detrimental to the friendly relationship between Georgia and Armenia. Gigiadze said that Georgia “does not accept any kind of meeting between officials of an allied republic and the occupation administration.” In turn, Prime Minister Abrahamyan called his colleague and reaffirmed Armenia’s recognition of Georgia's territorial integrity. At a joint session of some standing committees of Georgia’s Parliament, Georgia’s Foreign Minister Tamar Beruchashvili expressed her firm belief that the Sahakyan-Bibilov meeting must have been organized by “forces that have serious and far-reaching plans.”

Simultaneously, on May 4 Georgia’s Ministry of Foreign Affairs released a statement, according to which the ministry “reaffirms its support for the sovereignty and territorial integrity of Azerbaijan and does not recognize the so-called ‘Parliamentary Elections’ held in Nagorno-Karabakh.” Although Georgia, along with other states traditionally does not recognize Nagorno-Karabakh as an independent state, this statement was a unique response to Sahakyan’s meeting with a high representative of Georgia’s breakaway region. Generally, Armenia’s political parties have not criticized Sahakyan for his informal ties with Bibilov. Moreover, the head of the Heritage Faction, Rubik Hakobyan, stated that Georgia’s reluctance to recognize the elections in Stepanakert and its support for Azerbaijan’s territorial integrity indicates that Armenia should adjust its position towards Georgia to resemble that of Georgian authorities.

However, Prime Minister Abrahamyan’s short visit to Batumi and the outcomes of the diplomatic negotiations clearly show that the two governments have quickly overcome the tensions caused by the meeting. Armenia and Georgia are currently developing their relations especially in the energy field, and the visit of the Minister of Transport and Communications served to further enhance bilateral cooperation. In December 2014, Minister Beglaryan and Georgia’s Deputy Prime Minister Giorgi Kvirikashvili signed an agreement on the construction of a new border bridge, the Friendship Bridge, which will bolster bilateral commercial ties.

The two states are also planning to build a fourth high-voltage transmission line connecting their power grids. This estimated US$ 105 million project is projected to enhance mutual electricity supplies. Similarly, trade turnover between Armenia and Georgia is increasing. In 2014, Armenian foreign direct investments (FDI) in Georgia grew by 139 percent, compared to 2013.

Experts believe that Abrahamyan’s recent working visit signaled continuity in cordial relations and high level cooperation between Georgia and Armenia. Johnny Melikian, an expert on Georgian studies, stressed that “this visit was a message to all states that thought there was serious crisis between the two countries.” The expert explained that these kind of incidents always take place in interstate relations, but this one could not affect Georgia-Armenia relations for the worse.

During the working visit, the Prime Ministers agreed to hold the next meeting in Javakheti in order to discuss the problems that exist in the region.

The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.